From: Simon Cozens <[EMAIL PROTECTED]?
Sent: Monday, May 14, 2001 12:08 PM
> There are some contractors here, I understand, who might have something
> to say about government policy on taxation.
Heh. Can you be a contractor and hold on to your left-wing principles? Let's
see...
Whilst I'd seem to be happier (or, rather, 'richer') without IR35, I am very
sympathetic to the point of view that most contractors have been abusing an
obvious loophole for a very long time. I believe that people with more money
should pay more tax and therefore am happy to pay my way.
I am in the process of invesigating converting all of my income to PAYE. A
preliminary report from my IFA shows that it's feasible for my company to
increase my salary to a level whereby I get the same amount from salary
alone as I do currently from a combination of salary and dividends.
Unfortunately for the government. This means that my company will _never_
show a profit. And, therefore, that they will get no corporation tax from
me. It looks like the increase in Income Tax/NIC will be almost exactly the
same size as the decrease in Corp Tax. Therefore IR35 has almost zero effect
on the money that either I or the government take from my company.
Mind you, I've never been one of those contractors who pay themselves £2,500
pa so YMMV.
Dave...
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